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Inflation is Up 7% in December Reaches Fastest Pace Since 1982

For December the CPI rose 0.5%. From a year ago the CPI is up 7.0%, the most since Jimmy Carter.
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CPI Year-Over-Year Percent Change NSA 2021-12 Detail

Price Hikes From a Year Ago    

• CPI 7.0%
• Shelter 6.0%
• Excluding Food and Energy 5.5%
• Food and Beverages 6.0% 
• Owners' Equivalent Rent 3.8%
• Medical Care Services 2.5%
• Rent of Primary Residence 3.3%

CPI Month-Over Month 

CPI Month-Over-Month SA 2021-12

CPI Year-Over Year Since 1971

CPI Year-Over-Year Percent Change NSA 2021-12

The last time the CPI rose this much, Jimmy Carter was president and oil prices were soaring in an Iranian supply crunch.

Owner's Equivalent Rent 

Owners' Equivalent Rent, the mythical price one pays to rent one's own house from himself is the single largest item in the CPI. It has a current weight of 23.509%. 

The series only dates to 1983. Prior to that, home prices were directly in the CPI. Today, the BLS views home prices as a capital expense.

Economists have a good case that home prices are a capital expense, but historical comparisons are inaccurate. More to the point, home prices are a measure of inflation that the Fed and BLS just don't count. 

Housing Adjusted CPI

CS National Top 10 Metro CPI OER INDEX 2021-10

It should be difficult if not impossible to say that housing prices are not a measure of inflation.

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But that's what the BLS and Fed say every month.

Homeownership Dreams of Zoomers and Millennials Shattered by Prices

Home prices and rent are soaring faster than wages. This shattered home buying plans of generations Y and Z and put them in a rent squeeze as well.

For discussion, please see Homeownership Dreams of Zoomers and Millennials Shattered by Prices

What About Property Taxes?

For a look at the tax aspect and utilities please see Reader Shares Fascinating Household Expense Data, the Same House for 80 Years!

Fed is Out of Control

Every Measure of Real Interest Rates Shows the Fed is Out of Control.

Fed Operations Look Like a Ponzi Scheme

Finally, please see my take Fed Operations Look More Like a Ponzi Scheme Than Bitcoin or Ethereum

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